Answer:
an operating lease.
Step-by-step explanation:
A lease refers to a contract that rents a land or other properties to another person for a specified period of time and amount of money.
A lease right can be defined as an approval granted by a lessor (landlord) to a lessee for the use of a property such as land over a specific period of time.
A lease for a period of 24 months must be in writing between the lessor (landlord) and the lessee (tenant) to be enforceable by a competent court of law
Generally, a single lease expense is recognized on the income statement for an operating lease.
A financial statement is a written report that quantitatively describes a firm's financial health. Under the financial statements is a cash-flow statement, which is used to record the cash inflow and cash equivalents leaving a business firm.
Cash flow statement, also known as the statement of cash flows, contains financial information about operating, financial and investing activities.
Hence, activities that involve the production or purchase of merchandise and the sale of goods and services to customers, including expenditures related to administering the business, are classified as operating activities.